Shocking Bitcoin Treasury Flops: 7 Firms Whose BTC Bets Crumbled

The allure of a Bitcoin treasury strategy once promised guaranteed stock pumps. Many firms hoped to replicate MicroStrategy’s success. However, this playbook is now losing its effectiveness. Announcing a significant corporate Bitcoin acquisition no longer assures a soaring share price. In fact, some companies have seen their stock prices tumble significantly. This article examines several firms whose ambitious BTC investment strategy ultimately failed to deliver lasting gains, leaving investors disappointed and highlighting a shifting crypto market reaction.

The Cooling Crypto Market Reaction to Corporate Bitcoin Holdings

Initially, pioneering companies like MicroStrategy (now Strategy) set the benchmark. They accumulated massive amounts of Bitcoin, achieving over 2,200% stock growth since August 2020. This success inspired many others. As of August 29, 2025, 161 publicly traded companies collectively hold nearly 1 million BTC, representing about 4.7% of Bitcoin’s total supply. However, the market has matured. A simple Bitcoin announcement no longer guarantees a positive crypto market reaction. Newcomers in 2025 faced a different reality. Some firms diversified into Ether (ETH) instead. Others watched their shares fall back to pre-announcement levels, or even lower. We will explore specific examples of companies whose ambitious Bitcoin plans did not translate into sustained positive stock performance.

GameStop’s Fumbled BTC Investment Strategy

GameStop’s journey has long been tied to the broader crypto narrative. In 2021, retail traders on Reddit’s r/WallStreetBets famously triggered a short squeeze on its stock. This event brought meme finance into the mainstream. Around the same time, Dogecoin (DOGE) surged with cultural hype and Elon Musk’s tweets. Therefore, expectations were high for GameStop’s venture into Bitcoin.

• On March 26, 2025, GameStop announced its plan to invest in Bitcoin.
• Initially, its stock jumped 12% on the news.
• It peaked at $35 per share on May 28 after acquiring 4,710 BTC.

However, investors quickly ‘sold the news.’ This differed greatly from the meme-driven pumps of 2021. The BTC investment strategy failed to recreate that earlier frenzy. On Thursday, its shares closed at $22.79, marking a more than 27% decline year-to-date. This clearly demonstrates a muted crypto market reaction compared to past events.

Empery Digital: An EV Maker’s Failed Bitcoin Treasury Pivot

Not all companies entering the Bitcoin treasury space have a background in crypto. MicroStrategy, for example, was a business intelligence firm before its pivot. Japan’s Metaplanet, a former budget hotel operator, saw its share price surge by 6,000% after adopting a similar strategy in 2024. Volcon, an electric vehicle manufacturer, aimed for similar success.

• On July 17, Volcon announced a $500-million Bitcoin treasury strategy.
• Two weeks later, it rebranded as Empery Digital (EMPD) on Nasdaq.
• The announcement briefly lifted the stock to $21 from its usual $6-$7 range.

Unfortunately, the rally did not last. On Thursday, EMPD closed at $6.99, returning to its pre-announcement levels. The company’s stock performance is down 80% in 2025. This shows that a rebrand and a significant corporate Bitcoin announcement are no longer sufficient to sustain investor enthusiasm in the current market.

Sequans Communications: A Semiconductor Firm’s Tumbling Stock Performance

Sequans Communications, a French semiconductor firm (SQNS on NYSE), has a trading history marked by volatility. Its stock often shows brief spikes followed by prolonged declines. At the start of July 2025, SQNS was trading at $1.45, continuing a year-long decline. Its foray into Bitcoin aimed to reverse this trend.

• On July 10, Sequans announced its first Bitcoin purchase.
• This briefly ignited a rally, sending shares to $5.39.
• However, momentum quickly faded, and by early August, the stock slid to $1.25.

The company recently announced a $200-million at-the-market equity offering. This aims to fund plans to accumulate 100,000 BTC by 2030. Despite this ambitious long-term BTC investment strategy, the news did not prevent further decline. On Thursday, SQNS closed at $0.91. Its brief Bitcoin hype represented only a small blip in its ongoing struggle for positive stock performance.

Vanadi Coffee’s Distressed Corporate Bitcoin Play

Many firms turn to Bitcoin when facing financial difficulties. Spanish cafe chain Vanadi Coffee provides a clear example. In 2024, the company reported an annual loss of 3.33 million euros ($3.9 million), an increase from the previous year. The Bitcoin treasury plan became a strategic move to address these challenges.

• The Bitcoin plan became official on June 29.
• The next day, shares surged to 1.09 euros, up over 300% from 0.27 euros.

By mid-trading on Friday, August 29, 2025, the stock had slipped back to 35 euro cents. While still up 95.6% year-to-date, it remains down 44% from the same point in 2024. This highlights that a corporate Bitcoin strategy, even when boosting shares initially, does not guarantee a full recovery for financially distressed companies, demonstrating a cautious crypto market reaction to such plays.

Ming Shing Group: Doubling Down Amid Falling Stock Performance

Ming Shing Group, a Hong Kong-based construction and engineering company, debuted on Nasdaq in November 2024. Soon after, it began accumulating Bitcoin. This move was part of a clear BTC investment strategy to leverage the digital asset’s potential.

• Its first purchase on January 13, 2025, involved 500 BTC.
• Currently, it holds 833 BTC.
• The Bitcoin strategy initially drove shares to an all-time high of $8.50 from its Nasdaq debut at $5.59.

However, the stock performance has since slumped to $1.85 at Thursday’s close. On August 21, the company announced a $483-million deal to acquire an additional 4,250 BTC through a share issuance. If completed, Ming Shing would become Hong Kong’s largest corporate Bitcoin holder. This news briefly lifted the struggling share price, but most gains were erased the same day, indicating persistent investor skepticism.

K Wave Media: Entertainment Firm’s Bitcoin Treasury Under Pressure

South Korean entertainment company K Wave Media also ventured into Bitcoin. Despite significant capital raising for BTC acquisitions, its shares have continued to slide. This further illustrates the changing dynamics of the crypto market reaction to corporate adoption.

• The company made its first Bitcoin purchase in July 2025.
• It raised $1 billion for BTC acquisitions.
• An SEC filing on June 4 disclosed a $500-million standby equity purchase agreement.
• Plans included operating Lightning Network nodes and integrating BTC into its platform.

The initial Bitcoin strategy briefly lifted the stock from its post-SPAC sell-off. However, the momentum quickly faded. Since the company’s first BTC purchase on July 10, shares have declined. They closed at $1.85 on August 28, just below the $1.92 level recorded on July 3, the day before its Bitcoin treasury filing. This case demonstrates that even a comprehensive BTC investment strategy and significant capital cannot guarantee positive stock performance in a challenging market.

Lessons from Bitcoin Treasury Successes and Failures

These examples collectively demonstrate a crucial lesson: announcing a Bitcoin treasury strategy is no longer a guaranteed ‘Hail Mary’ for struggling firms. While share prices often spike on the news, they rarely hold those gains. The market has become more discerning. Factors beyond mere Bitcoin acquisition now drive long-term stock performance. Investors are looking for sustainable business models that integrate crypto effectively, rather than just holding it on the balance sheet.

However, some ‘digital diamonds in the rough’ do exist. For instance, KindlyMD announced plans to merge with Nakamoto Holdings. This new entity, trading as NAKA, has become the 16th-largest publicly traded Bitcoin holder with 5,765 BTC. It has outperformed Metaplanet in recent months. Japanese nail salon franchiser Convano, with 365 BTC, also shows strong stock performance, outperforming both Nakamoto Holdings and Metaplanet. These successes suggest that careful execution, strong underlying business fundamentals, and a genuine integration of Bitcoin, rather than just an announcement, are key to a positive crypto market reaction.